Microsoft and Activision Blizzard Extend $75 Billion Merger Deadline
Microsoft and Activision Blizzard said they have agreed to extend the deadline for their $75 billion merger until mid-October, a step that will allow them to continue with efforts to gain regulatory approval in the U.K. The companies, which had originally planned to close the deal by Tuesday, gave themselves until Oct. 18 to complete a transaction that would give Microsoft ownership of Activision’s vast portfolio of videogames, including those from hit series such as Call of Duty, Candy Crush and World of Warcraft.
The companies agreed to increase the termination fee from $3 billion to $3.5 billion if the transaction is terminated after Aug. 29 and to $4.5 billion if the deal is called off after Sept. 15.
Microsoft Vice Chair and President Brad Smithsaid on Twitter that the extension would provide “ample time" to resolve remaining regulatory issues. “We are confident about our prospects for getting this deal across the finish line," he said. A spokesperson for Activision Blizzard echoed Smith’s remarks about the deal closing quickly.
Activision also released its second-quarter financial results showing revenue rose 34% from a year earlier to $2.21 billion. Earnings more than doubled to $587 million, and net bookings climbed 50%. Microsoft is expected to report its quarterly results on Tuesday.
Activision added that its board approved a dividend of 99 cents, payable Aug. 17. The company last paid an annual dividend of 47 cents in April 2022.
Activision shares have gained ground recently as investors bet that the deal is more likely to close. They ended trading Tuesday at $92.74, up 10% in July. The deal price is $95 a share.
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